LITHIA MOTORS INC (LAD) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:LAD • US5367971034

344.24 USD
+12.06 (+3.63%)
At close: Feb 6, 2026
344.24 USD
0 (0%)
After Hours: 2/6/2026, 8:04:00 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall LAD gets a fundamental rating of 5 out of 10. We evaluated LAD against 121 industry peers in the Specialty Retail industry. LAD has a medium profitability rating, but doesn't score so well on its financial health evaluation. LAD has a correct valuation and a medium growth rate.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year LAD was profitable.
  • LAD had a positive operating cash flow in the past year.
  • LAD had positive earnings in each of the past 5 years.
  • The reported operating cash flow has been mixed in the past 5 years: LAD reported negative operating cash flow in multiple years.
LAD Yearly Net Income VS EBIT VS OCF VS FCFLAD Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B

1.2 Ratios

  • LAD's Return On Assets of 3.67% is fine compared to the rest of the industry. LAD outperforms 62.81% of its industry peers.
  • LAD's Return On Equity of 13.28% is fine compared to the rest of the industry. LAD outperforms 71.07% of its industry peers.
  • LAD has a Return On Invested Capital (5.53%) which is comparable to the rest of the industry.
  • LAD had an Average Return On Invested Capital over the past 3 years of 7.58%. This is below the industry average of 12.04%.
Industry RankSector Rank
ROA 3.67%
ROE 13.28%
ROIC 5.53%
ROA(3y)5.63%
ROA(5y)6.47%
ROE(3y)17.4%
ROE(5y)18.55%
ROIC(3y)7.58%
ROIC(5y)8.54%
LAD Yearly ROA, ROE, ROICLAD Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

  • LAD has a Profit Margin of 2.39%. This is in the better half of the industry: LAD outperforms 62.81% of its industry peers.
  • LAD's Profit Margin has been stable in the last couple of years.
  • With a decent Operating Margin value of 4.47%, LAD is doing good in the industry, outperforming 64.46% of the companies in the same industry.
  • In the last couple of years the Operating Margin of LAD has grown nicely.
  • LAD's Gross Margin of 15.40% is on the low side compared to the rest of the industry. LAD is outperformed by 84.30% of its industry peers.
  • In the last couple of years the Gross Margin of LAD has remained more or less at the same level.
Industry RankSector Rank
OM 4.47%
PM (TTM) 2.39%
GM 15.4%
OM growth 3Y-15.89%
OM growth 5Y2.61%
PM growth 3Y-21.85%
PM growth 5Y0.64%
GM growth 3Y-6.17%
GM growth 5Y-0.01%
LAD Yearly Profit, Operating, Gross MarginsLAD Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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ROAROEROICOperating and Profit MarginShow most profitable peers

2

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), LAD is destroying value.
  • The number of shares outstanding for LAD has been reduced compared to 1 year ago.
  • The number of shares outstanding for LAD has been increased compared to 5 years ago.
  • LAD has a worse debt/assets ratio than last year.
LAD Yearly Shares OutstandingLAD Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 5M 10M 15M 20M 25M
LAD Yearly Total Debt VS Total AssetsLAD Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B 20B

2.2 Solvency

  • LAD has an Altman-Z score of 2.48. This is not the best score and indicates that LAD is in the grey zone with still only limited risk for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 2.48, LAD is in line with its industry, outperforming 53.72% of the companies in the same industry.
  • LAD has a Debt/Equity ratio of 2.07. This is a high value indicating a heavy dependency on external financing.
  • Looking at the Debt to Equity ratio, with a value of 2.07, LAD is doing worse than 68.59% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF N/A
Altman-Z 2.48
ROIC/WACC0.61
WACC9.13%
LAD Yearly LT Debt VS Equity VS FCFLAD Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 1.21 indicates that LAD should not have too much problems paying its short term obligations.
  • LAD's Current ratio of 1.21 is in line compared to the rest of the industry. LAD outperforms 43.80% of its industry peers.
  • A Quick Ratio of 0.30 indicates that LAD may have some problems paying its short term obligations.
  • LAD has a worse Quick ratio (0.30) than 70.25% of its industry peers.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 0.3
LAD Yearly Current Assets VS Current LiabilitesLAD Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 15.64% over the past year.
  • The Earnings Per Share has been growing by 20.64% on average over the past years. This is a very strong growth
  • Looking at the last year, LAD shows a quite strong growth in Revenue. The Revenue has grown by 8.42% in the last year.
  • The Revenue has been growing by 23.35% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)15.64%
EPS 3Y-8.87%
EPS 5Y20.64%
EPS Q2Q%15.71%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y16.59%
Revenue growth 5Y23.35%
Sales Q2Q%4.93%

3.2 Future

  • Based on estimates for the next years, LAD will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.37% on average per year.
  • The Revenue is expected to grow by 5.12% on average over the next years.
EPS Next Y18.77%
EPS Next 2Y13.05%
EPS Next 3Y13.19%
EPS Next 5Y14.37%
Revenue Next Year4.52%
Revenue Next 2Y4.55%
Revenue Next 3Y5.18%
Revenue Next 5Y5.12%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
LAD Yearly Revenue VS EstimatesLAD Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 10B 20B 30B 40B
LAD Yearly EPS VS EstimatesLAD Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20 40 60

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Find the best growth stocksShow best growing peers

6

4. Valuation

4.1 Price/Earnings Ratio

  • LAD is valuated reasonably with a Price/Earnings ratio of 9.78.
  • Compared to the rest of the industry, the Price/Earnings ratio of LAD indicates a rather cheap valuation: LAD is cheaper than 89.26% of the companies listed in the same industry.
  • LAD's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.92.
  • The Price/Forward Earnings ratio is 8.98, which indicates a very decent valuation of LAD.
  • Based on the Price/Forward Earnings ratio, LAD is valued cheaply inside the industry as 90.08% of the companies are valued more expensively.
  • The average S&P500 Price/Forward Earnings ratio is at 27.78. LAD is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 9.78
Fwd PE 8.98
LAD Price Earnings VS Forward Price EarningsLAD Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of LAD indicates a somewhat cheap valuation: LAD is cheaper than 64.46% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 8.73
LAD Per share dataLAD EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 500 1K 1.5K

4.3 Compensation for Growth

  • LAD's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • LAD's earnings are expected to grow with 13.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.52
PEG (5Y)0.47
EPS Next 2Y13.05%
EPS Next 3Y13.19%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. Dividend

5.1 Amount

  • With a yearly dividend of 0.66%, LAD is not a good candidate for dividend investing.
  • Compared to an average industry Dividend Yield of 2.19, LAD pays a bit more dividend than its industry peers.
  • With a Dividend Yield of 0.66, LAD pays less dividend than the S&P500 average, which is at 1.81.
Industry RankSector Rank
Dividend Yield 0.66%

5.2 History

  • The dividend of LAD is nicely growing with an annual growth rate of 11.85%!
  • LAD has paid a dividend for at least 10 years, which is a reliable track record.
  • LAD has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)11.85%
Div Incr Years11
Div Non Decr Years11
LAD Yearly Dividends per shareLAD Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2

5.3 Sustainability

  • 6.25% of the earnings are spent on dividend by LAD. This is a low number and sustainable payout ratio.
  • LAD's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP6.25%
EPS Next 2Y13.05%
EPS Next 3Y13.19%
LAD Yearly Income VS Free CF VS DividendLAD Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B 1.5B
LAD Dividend Payout.LAD Dividend Payout, showing the Payout Ratio.LAD Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

LITHIA MOTORS INC

NYSE:LAD (2/6/2026, 8:04:00 PM)

After market: 344.24 0 (0%)

344.24

+12.06 (+3.63%)

Chartmill FA Rating
GICS IndustryGroupConsumer Discretionary Distribution & Retail
GICS IndustrySpecialty Retail
Earnings (Last)10-22
Earnings (Next)02-11
Inst Owners103.93%
Inst Owner Change-2.89%
Ins Owners0.93%
Ins Owner Change8.84%
Market Cap8.35B
Revenue(TTM)37.61B
Net Income(TTM)898.90M
Analysts82.11
Price Target405.83 (17.89%)
Short Float %7.87%
Short Ratio7.4
Dividend
Industry RankSector Rank
Dividend Yield 0.66%
Yearly Dividend2.1
Dividend Growth(5Y)11.85%
DP6.25%
Div Incr Years11
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.07%
Min EPS beat(2)9.71%
Max EPS beat(2)10.43%
EPS beat(4)3
Avg EPS beat(4)6.29%
Min EPS beat(4)-1.6%
Max EPS beat(4)10.43%
EPS beat(8)5
Avg EPS beat(8)2.34%
EPS beat(12)6
Avg EPS beat(12)0.85%
EPS beat(16)8
Avg EPS beat(16)1.96%
Revenue beat(2)1
Avg Revenue beat(2)-0.38%
Min Revenue beat(2)-2.05%
Max Revenue beat(2)1.29%
Revenue beat(4)2
Avg Revenue beat(4)-0.69%
Min Revenue beat(4)-2.33%
Max Revenue beat(4)1.29%
Revenue beat(8)2
Avg Revenue beat(8)-1.8%
Revenue beat(12)3
Avg Revenue beat(12)-1.77%
Revenue beat(16)5
Avg Revenue beat(16)-1.11%
PT rev (1m)0.83%
PT rev (3m)2.4%
EPS NQ rev (1m)-4.62%
EPS NQ rev (3m)-3.7%
EPS NY rev (1m)-1.06%
EPS NY rev (3m)-0.17%
Revenue NQ rev (1m)-1.96%
Revenue NQ rev (3m)-1.86%
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-0.19%
Valuation
Industry RankSector Rank
PE 9.78
Fwd PE 8.98
P/S 0.22
P/FCF N/A
P/OCF 28.32
P/B 1.23
P/tB 5.36
EV/EBITDA 8.73
EPS(TTM)35.19
EY10.22%
EPS(NY)38.32
Fwd EY11.13%
FCF(TTM)-1.75
FCFYN/A
OCF(TTM)12.16
OCFY3.53%
SpS1550.95
BVpS279.12
TBVpS64.2
PEG (NY)0.52
PEG (5Y)0.47
Graham Number470.11
Profitability
Industry RankSector Rank
ROA 3.67%
ROE 13.28%
ROCE 9.34%
ROIC 5.53%
ROICexc 5.58%
ROICexgc 7.25%
OM 4.47%
PM (TTM) 2.39%
GM 15.4%
FCFM N/A
ROA(3y)5.63%
ROA(5y)6.47%
ROE(3y)17.4%
ROE(5y)18.55%
ROIC(3y)7.58%
ROIC(5y)8.54%
ROICexc(3y)7.8%
ROICexc(5y)8.76%
ROICexgc(3y)10.26%
ROICexgc(5y)11.04%
ROCE(3y)12.38%
ROCE(5y)13.83%
ROICexgc growth 3Y-22.88%
ROICexgc growth 5Y-1.28%
ROICexc growth 3Y-24.14%
ROICexc growth 5Y-3.26%
OM growth 3Y-15.89%
OM growth 5Y2.61%
PM growth 3Y-21.85%
PM growth 5Y0.64%
GM growth 3Y-6.17%
GM growth 5Y-0.01%
F-Score6
Asset Turnover1.53
Health
Industry RankSector Rank
Debt/Equity 2.07
Debt/FCF N/A
Debt/EBITDA 7.03
Cap/Depr 107.01%
Cap/Sales 0.9%
Interest Coverage 2.34
Cash Conversion 14.78%
Profit Quality N/A
Current Ratio 1.21
Quick Ratio 0.3
Altman-Z 2.48
F-Score6
WACC9.13%
ROIC/WACC0.61
Cap/Depr(3y)135.76%
Cap/Depr(5y)158.69%
Cap/Sales(3y)0.93%
Cap/Sales(5y)1.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.64%
EPS 3Y-8.87%
EPS 5Y20.64%
EPS Q2Q%15.71%
EPS Next Y18.77%
EPS Next 2Y13.05%
EPS Next 3Y13.19%
EPS Next 5Y14.37%
Revenue 1Y (TTM)8.42%
Revenue growth 3Y16.59%
Revenue growth 5Y23.35%
Sales Q2Q%4.93%
Revenue Next Year4.52%
Revenue Next 2Y4.55%
Revenue Next 3Y5.18%
Revenue Next 5Y5.12%
EBIT growth 1Y7.78%
EBIT growth 3Y-1.94%
EBIT growth 5Y26.57%
EBIT Next Year16.34%
EBIT Next 3Y9.97%
EBIT Next 5Y10.99%
FCF growth 1Y91.95%
FCF growth 3Y-63.67%
FCF growth 5Y-28.69%
OCF growth 1Y209.27%
OCF growth 3Y-38.16%
OCF growth 5Y-4.12%

LITHIA MOTORS INC / LAD FAQ

What is the fundamental rating for LAD stock?

ChartMill assigns a fundamental rating of 5 / 10 to LAD.


What is the valuation status for LAD stock?

ChartMill assigns a valuation rating of 6 / 10 to LITHIA MOTORS INC (LAD). This can be considered as Fairly Valued.


How profitable is LITHIA MOTORS INC (LAD) stock?

LITHIA MOTORS INC (LAD) has a profitability rating of 5 / 10.


What is the earnings growth outlook for LITHIA MOTORS INC?

The Earnings per Share (EPS) of LITHIA MOTORS INC (LAD) is expected to grow by 18.77% in the next year.


Can you provide the dividend sustainability for LAD stock?

The dividend rating of LITHIA MOTORS INC (LAD) is 6 / 10 and the dividend payout ratio is 6.25%.